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Study On Upgrading Competitiveness Of Cosmetic Enterprise In China

Posted on:2008-08-20Degree:MasterType:Thesis
Country:ChinaCandidate:S ZhaoFull Text:PDF
GTID:2121360215452607Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
When reviewing the history of cosmetics, we know that Queen of Egypt took a bath with donkey milk to make skin white and delicate. In Tang Dynasty Queen Yang was covered with facial mask which was made from arrow root, pearl powder, white jade powder, ginseng and water. At present, there are over 25000 brands of cosmetics all over the country. We can find that it has been necessary for mankind now to retain pretty and youthful, especially female. This kind of demand creates the luxuriant soil for the growth of cosmetics industry. However, the Chinese cosmetics industry has developed only for 20 years or so. Comparing with the foreign well-known enterprises, it's obviously in a weak position including funds, products, production scales, market quota and so on. It is very important for us to develop Chinese cosmetics enterprise, to figure out how to shake off strong emery in the market, increase efficiency and upgrade competitiveness.Every development of business enterprise is reliable to the development of whole industry. So is the upgrade of the competitiveness of enterprise. This thesis analyses the advantage, disadvantage, opportunity and threat in cosmetics enterprise with the classic SWOT method, based on judging stage in industrial life cycle and present condition of Chinese cosmetics industry and combinatorial analysis between industry life cycle and the competitiveness of enterprise. Finally according to the above analysis, I drew a conclusion with some suggestions for upgrading competitiveness of Chinese cosmetics enterprise.The thesis is divided into five parts:Part I: Theories of competitiveness of enterprise and industry life cycle. The competitiveness of enterprise means that in the competitive market, a business enterprise has the comprehensive quality that the enterprise can provide product or service toward the market more availably than others in order to achieve profit and development. The industry that a competitiveness of enterprise involves is a competitive and exoteric market. This is manifested in consumer value and business enterprise interest and is combinatorial character of enterprise. The factors which influence the competitiveness of enterprise include: various factors when enterprise compete with each other, various resource which enterprise can gain and ability which assures existence and development.The industry life cycle means time cycle in which a industry exists from born to die in the market. Generally, the industry life cycle presents the different stage in the history. It can be divided into formative stage, growth stage, autumn stage and decline stage (or decay period). Each stage presents different characteristics. It closely relates with each other. The latter stage is on the basis of former stage and the former one is extended by the latter one. The transformation among each stage depends on the market mechanism.Part II: The combinatorial analysis of industry life cycle and competitiveness of enterprise. Combining the theories of industry life cycle and competitiveness of enterprise, we can analyze the strategy of competitiveness of enterprise and competitive emphasis according to the characteristics of four basic stages of life cycle. We make use of combination analysis between industry life cycle and competitiveness of enterprise in order to describe that competitiveness of different stage in the life cycle has different courses. With policy analysis, the industrial combinatorial analysis is very important for enterprise to hold the special demand of industry among different stages and environment, relocate in the industry, look into the insight into industrial regulation, change in trend and reduce disadvantageous factors with resources.Part III: Present condition of Chinese cosmetics industry and judge of its life cycle stage. Chinese cosmetics industry has developed for more than 20 years. It has grown more vigorously than ever before. It can be divided into three stages, including incipient stage, competitive stage and stage of development. With consume structure analysis, the Chinese cosmetics market is probably divided into top brand, high brand, medial brand, medial and low brand and low brand. Overgrowth of the Chinese cosmetics industry is the outcome of the development of the national economy and the purchasing power.It's very important to judge which stage of life cycle the Chinese cosmetics industry is in. According to the whole industry, enterprise could integrate its own resources, adjust competitive strategy and adjust the contents of innovation form the characteristics of industrial life cycle in order to promote and keep competitive advantage. This thesis makes use of a simple method and monthly sale of Chinese cosmetics industry in 2004 and 2005 years to judge which stage the Chinese cosmetics industry is in. The outcome is the growth stage. Then, the thesis makes use of method of curve fitting analysis and data to examine the above result.Part IV: Analysis on the competitive condition of Chinese cosmetics enterprise. In this part, the classic SWOT method is handled to analyze advantage, disadvantage, opportunity and threat. I come up with several conclusions: First, enterprises have the advantage of low cost and low price. Some old brands have a good reputation among particular consumption. But enterprises also exist all kinds of disadvantages, such as a unitary variety of products, low technological level, weak related industry support, weak competitiveness in high level brand, low management level and weak ability of development and so on. Moreover, with the improvement of living standards and advanced experience of management and marketing brought by overseas-funded enterprises, these enterprises get a chance to upgrade. But at the same time, they have to face the strong threat form foreign enterprises. The high level market has been captured by foreign enterprises for a long time. They have never given up the chance to enter the low level market. And the quality demand of consumer is growing bit and bit.Part V: The countermeasures of promoting the competitiveness of Chinese cosmetics enterprises. According to the judgment of Chinese cosmetics industry and the present condition of competitiveness of cosmetics enterprises and combinatorial analysis between industry life cycle and the competitiveness of enterprise, I have put forward the following strategies to promote the competitiveness of Chinese cosmetics enterprises: First, enterprises should look for energetic invention during innovation and attain high-quality products on the foundation to strengthen the competitiveness of enterprise. Second, cosmetics enterprises should have a sharp insight to various demands of different consumers, and research product from the demand of consumers. Third, medium and small enterprises should concentrate the limited resources on advantage items in order to consolidate their position in the market and accumulate more resources to develop. Fourth, enterprises should not be engaged in simple production after concentrating the resources on advantage item. They should try their best to become a professional manufacturer in this field to give consumer a favorable impression and attain their deep recognition and higher loyalty. Fifth, having certain development scale, the Chinese cosmetics enterprises can choose brand strategy according to their own characteristics so that they can avoid risk and attain competitiveness, comparing with transnational corporation.
Keywords/Search Tags:Competitiveness
PDF Full Text Request
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